TaxTMI 
TaxTMI 
2019 (4) TMI 727
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....viding works contract service for civil construction of new kiln at the factory premises for manufacture of cement. The said CECL paid service tax on composition scheme under works contract service as per Notification 32/2007-ST dated 22.5.2007. It therefore appeared to the department that the appellants are not eligible for the credit of the materials namely cement, MS angles, channels etc. used for construction of kiln. The department was also of the view that after construction, the said inputs / capital goods became immovable property therefore the credit on such items is not available. Show Cause Notice was issued alleging the above and also for recovering the CENVAT credit to the tune of Rs. 1,56,354/- along with interest and also for....
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.... support structures and foundations for capital goods would be eligible for credit during the disputed period. He referred to Explanation (2) in the definition of 'inputs' during the relevant period and submitted that the Explanation makes it clear that input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. Kiln is a type of machinery required for manufacture of cement. He referred to the amendment brought forth in the definition of capital goods wherein Explanation (2) was amended to restrict the use of cement, angles, channels etc. for the use of construction in factory shed, building or laying of foundation. The ld. consultant thus argued that prior to 7.7.2009, there was ....
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....pugned items are not eligible. To support his argument, he relied upon Vandana Global Ltd. - 2010 (253) ELT 440 (Tri. LB) 4. Heard both sides. 5. The appellant is aggrieved by the disallowance of credit on items such as cement, MS angles, channels etc. It is not disputed that the items were used for work relating to installation of a new kiln in the factory. The appellant had procured duty paid TMT rods, steel rods, TOR steel, TMT bars, TMT rebar coil, steel structures etc. and supplied the same free of cost to CECL for construction of civil structure as well as supporting structures. The first allegation is that since the service provider namely CECL remitted service tax opting for composition scheme, the appellant cannot avail the credi....